Last week’s better-than-expected economic data raised expectations that the Fed will soon begin tapering its bond buying program. However, according to this New York Times article:

[I]nfluential Fed officials see little harm in postponing the decision, particularly compared with the risks of pulling back too soon. Significant details of the eventual retreat also remain the subjects of unresolved debates, according to the public statements and interviews. And some officials argue that the slow pace of inflation is itself a reason for the Fed to maintain its stimulus campaign.

Even when the Fed finally decides to begin tapering, the Fed will still be committed to the zero interest rate policy (ZIRP). The unemployment rate needs to keep falling and the inflation rate needs to rise before the Fed will even consider ending ZIRP, and based on Janet Yellen’s history, she won’t be in a hurry to end ZIRP when she takes over as the next Fed chairperson in February (assuming the Senate confirms her).

For the fifth straight week, no banks failed so the total number of bank failures for the year remains at 23. As a comparison, at this time last year there had been 50 bank failures for the year.

Savings & Checking Account Rates

This was a quiet week for rate changes. Only one bank increased its savings account rate. GE Capital Retail Bank (formerly MetLife Bank) increased the top rate from 0.85% to 0.90%. In addition, it removed the balance requirement to qualify for the top rate. Previously, a $25,000 minimum balance was required to qualify for the top rate. It’s interesting to note that this savings account rate and the lack of rate tiers now matches GE Capital Bank’s savings account. These two banks are sister banks that are both part of the General Electric Company. It’s nice to have banks that are part of the same company competing against each other.

We continue to have 5 institutions with non-promo rates at or above 1.00%. Four of those 5 are the new MySavingsDirect savings account, the new iGObanking.com money market account, the SmartyPig savings account and Palladian Private Bank savings account. All of these now offer a 1.00% APY. The highest rate continues to be at Connexus Y.E.S. Money Market Account which has a top-tier APY of 1.15% for a $100K minimum balance. An important downside of this account is that it requires an active checking account and direct deposit.

Reward Checking Accounts

There were no rate or balance cap changes on the nationally available reward checking accounts in the table below.

I just reported on one new reward checking account last week. It’s a new Kasasa Cash account that’s being offered by RepublicBankAz, N.A. The rate and balance cap are a little low compared to what’s nationally available. It currently pays 2.50% APY on balances up to $15K, and the bank is only accepting applications from people in Arizona.

The rates listed below are based on Annual Percentage Yield (APY). No minimum balances are required unless noted. MMA next to the rates indicate a money market account. Most MMAs have check writing and ATM cards. Online savings accounts usually lack both of these. Previous weekly summaries are available at this page.